Lawlor rejects blackmailing claims, Mahon hears

Former Fianna Fáil TD Mr Liam Lawlor has described as "outrageous" claims that he blackmailed a former associate for money, the Mahon tribunal heard today.

The claim was made by the solicitor Mr John Caldwell who was involved in land deal with Mr Lawlor which ended in dispute.

The deal involved the sale of the Coolamber lands, a 55-acre plot located opposite Mr Lawlor's home in Lucan.

At the time Mr Lawlor threatened Mr Caldwell with legal action in pursuit of money he considered he was owed from the sale.

Mr Lawlor said Mr Caldwell had refused to admit "liability" and was refusing to pay him. However in his evidence to the tribunal Mr Caldwell claimed Mr Lawlor was blackmailing him.

Today Mr Lawlor described this claim as "outrageous" saying he had only threatened Mr Caldwell with legal action.

The dispute was resolved by Mr Caldwell's own solicitor the late Mr David Morgan who brokered a deal in which Mr Lawlor was paid £350,000.

The money was placed in one of Mr Lawlor's bank accounts in Liechenstein in the form of a loan agreement to disguise its true source.

It was agreed that Mr Lawlor would not have to pay the money back and would not pay any interest on the money.

Lawyers for the tribunal have repeatedly claimed that Mr Lawlor in his previous evidence failed to disclose the true source of the money and the extent of his business deals with Mr Caldwell.

Counsel for the tribunal Mr Des O'Neill SC accused Mr Lawlor of deliberately keeping information from the inquiry and only admitting his involvement in land deals when the evidence had been proved.

Mr Lawlor rejects this allegation, claiming he has cooperated at all times with the tribunal to "the best of his ability".